New Federal Law for Military Spouse Same-State Tax Filing

A new federal law signed by President Donald Trump on December 31, 2018, the Veterans Benefits and Transition Act of 2018, allows military spouses to choose the same state of residence as their service member for tax filing purposes, regardless of whether they have ever lived in the state.

A tax bulletin from the Virginia Department of Taxation further explains the new federal law. CPAs will need to encourage clients that fit into this federal change to file new NC-4s accordingly.